5 Advantages Of Home Ownership
If you have been living with your parents or renting an apartment, you probably have been told by friends and family about at these 5 advantages of home ownership. Buying a home is a big step. If you have some reservations, knowing the benefits of home ownership may help you decide.
- Price Appreciation. This is perhaps one of the most important advantages of home ownership. Investing in a home is one of the best investments you can make. Although the real estate market tends to move in cycles, over the long term home values appreciate. Check the House Price Index provided by the Federal Housing Finance Industry to see home price movements across the county.
- The American Dream. Home Ownership just feels good; there is pride in ownership. You can feel good that you money you are paying for your mortgage is going toward something that you will own when you have paid off your mortgage. You don't have to worry about putting holes in the wall to hang your favorite beer lights or what color you are allowed to paint the walls. What is even better is that many homes come with a big enough basement to put in a pool table.
- Deduction for Mortgage Interest. In the beginning stages of paying off your mortgage, you will be paying more in terms of interest than principle. The good news, home ownership gives you the benefit of allowing you to deduct this interest from your taxes if you itemize. This can result in a nice reduction in your tax liability.
- Property Tax Deduction. When you have home ownership, you have to pay property taxes on your home. Depending on where you live, property taxes can be quite steep. Here again though, if you itemize, you can deduct property taxes from your taxes.
- Preferential Capital Gains Treatment. When you go to sell your home, you can exclude either $250,000 (individual) or $500,000 (married couple) of profit from the sale of your home from your taxes. Who doesn't want to reap a profit and not be subject to taxes on the profit?